DELTA, BC, Sept. 19, 2017 /CNW/ - Desert Gold Ventures
Inc. (TSX-V symbol: DAU) ("Desert Gold" or the
"Company") is pleased to announce that it has
closed the first tranche of its non-brokered private placement (the
"Private Placement") raising aggregate gross proceeds
of $500,000 from Sodinaf
International Group Inc. ("Sodinaf") through the issuance of
2,000,000 units (each a "Unit"). Each Unit consists of
one common share and one share purchase warrant (the
"Warrant"). Each Warrant entitles the holder to purchase one
additional common share of the Company at a price of CDN$0.30 per share for a period of five (5) years
from the closing of this Private Placement. Warrants will be
subject to a thirty (30) day acceleration clause upon announcement
by the Company that its shares have traded on a volume weighted
average basis of CDN$1.00 per common
share, or more, for at least ten (10) consecutive trading days.
Sodinaf is a "related party" to the Company under Multilateral
Instrument 61-101 Protection of Minority Security Holders in
Special Transactions ("MI 61‑101") by virtue of its
shareholdings being in excess of 10% of the issued and outstanding
shares of the Company (the "Share Capital"). Sodinaf
currently owns 4,760,800 common shares, representing approximately
20% of the current Share Capital. The Company sought and obtained
shareholder approval of creation of a Control Person as the closing
of the Private Placement resulted in Sodinaf becoming a "Control
Person" (as that term is defined in the TSX Venture Exchange's
policies).
The Private Placement is exempt from the formal valuation and
minority shareholder approval requirements of MI 61-101 as neither
the fair market value of any securities issued to or the
consideration paid by such persons will exceed 25% of the Company's
market capitalization.
The proceeds of the Private Placement will be used for drilling
and field work at the Company's Farabantourou and Segala West
projects in Western Mali. All
securities issued pursuant to the Private Placement will be subject
to a hold period of four months and a day.
ON BEHALF OF THE BOARD
"Jared
Scharf"
Jared Scharf, President and
Director
Desert Gold Ventures Inc.
+1 (858) 247-8195
For further information please visit our website
www.desertgold.ca or information available on www.SEDAR.com under
the Company's profile.
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release. This news release does not
constitute an offer to sell or a solicitation of an offer to
buy the securities described herein in the United States. The securities
described herein have not been and will not be registered
under the united states securities act of 1933, as amended, and may
not be offered or sold in the united states or to the
account or benefit of a U.S. person absent an exemption from the
registration requirements of such act.
SOURCE Desert Gold Ventures Inc.
